Short And Medium Questions From Notes Flashcards
First ideal of self government put forward by
Grand Old Man Dadabhai Naoroji
First Indian to sit in British Parliament
Dadabhai Naoroji
Absorption in terms of NI accounting
C+I+G
Absorption in terms of NI accounting
C+I+G
Demand management policies are also known as
Monetary and fiscal policies
Inventory Theoretic Approach formulated by
Baumol
Why is high powered money called so?
Has a capacity to create more money and decrease liability of the govt and central bank
Liquidity trap occurs when
Demand for money is perfectly elastic
One of the most important achievements of the Uruguay round
Creation of WTO in 1995
What is the Dutch Disease?
Commodity boom that brings about overall economy downtrap
When does free riding problem occur
Public good
“Public expenditure goes up in a step by step manner”
According to?
Peacock and Wiseman
Who developed the concept of PQLI
Morris David Morris
Who explained capacity and demand creating aspect of investment in growth theory
Domar
3- Gap model associated with
Edmund L. Bacha
Costless bargaining leads to socially efficient outcome irrespective of who has property rights
what theorem?
Coase Theorem
Growth Paradox in Indian statistics during 1986-2001 is associated with?
Difference between real per capita GDP and real per capita consumption is huge in India and small for China
Most important contribution of Nehru
Planning is the key to welfare
What is the impossible Trinity?
A country cannot simultaneously have a fixed exchange rate, open capital account convertibility and independent monetary policy
What reforms are the following committed associated with?
Rangarajan Committee
BOP
Kelkar Committee
Tax Reforms
Tarapore Committee
Capital a/c convertibility
Chakravarty Committee
Monetary reforms
Indian Rupee devalued against which currencies?
US Dollar, Deutsche Mark, Yen, Pound Sterling, French Franc
In which year did the world bank not hesitate to say that India has stepped into service revolution?
2004
Swiss formula of the WTO is related to
Non-agricultural tariff
FEMA introduced in?
1999
What was the Indian literacy rate according to census 2011?
73%
As per which census was the Indian literacy rate 73%?
Census 2011
Hindayal Upadhyay Grameen Kanshalya Yojana
Placement linked skill development scheme for the rural youth who are poor
When was Mission Indradhanush launched?
December 2014
Alternative to Mahalanabish development paradigm
Vakil and Brahmananda’s 2 way goods model
Dadabhai Naoroji’s major contributions
- First economist to estimate India’s NI at 300 million pounds(40 shillings/Rs 20 per capita).
- Challenged John Stuart Mill’s free trade doctrine. Contradiction: Trade between 2 countries - one free, one under colonial rule, free country always gains. used this to explain drain of wealth from india to England
How to secure basic needs for everyone
OR
There are two legs on which a country must walk
Focus on economic growth and social development simultaneously
De-Coupling theory
Economists and policy makers were under the impression that the financial crisis in USA cannot hamper emerging markets in China in India in any way. Thus it was believed that India and China would be de-coupled. they believed that the contagious* effect will not occur. but this did not hold. the markets were affected through 3 channels
- financial channel
- Debt/trade channel
- confidence (credit rating) channel
thus de-coupling theory doesn’t hold
*contagious effect- criris in one country will affect another country
Political system China vs India
India - Democratic
china- Authoritarian
Development planning strategy India vs China
India - after Independence highly controlled administrative economy
China - same
Mommie names Batman vs Superman
Batman - Martha
Superman- Same
Rule of law India vs China
India- License permit quota raj toned down but bureaucratic India based enterprises still face challenges in terms of ease of doing business.
China - many laws in place but weak inconsistent of enforcement of regulations and contracts
economic growth india vs China
India - growth paradox 1986-2001.growth trajectory passed through several ups and downs
China- no paradox. phenomenal GDP growth rate since 1970s
Economic structure India vs China
India - excellence in service sector - it consulting, software, call centres; growing strength in financial analysis, drug research, industrial engg.
China- manufacturing workshop of the world- increasing sophisticated products
Infrastructure India vs China
India - much electricity obtained illegally . inadequate transport. infrastructure expense low
china- infrastructure expenditure high. 10 times more paved roads than India. power coat 10 times lower. phone penetration 6times higher
external trade India vs China
India - some trade liberalisation - scope for more. FDI opened more recently but caps remain. service exports better than China. Global player in IT and BPO and pharmaceuticals.
goods export in 2007- $155 billion
China- well integrated in global economy. dependent on foreign firms. hay export by MNCs. heavy use if FDI
goods export in 2007- $1218billion
public sector India vs China
India - large and loss making
China. same. India’s loss< china’s
banking sector India vs China
India - weak and underdeveloped
china- same
income distribution India vs china
india- overty declining but rate is slow and absolute number under poverty remains same( population grows)
china- significant reduction of poverty. % declined, abs number also declined. but inequality increased.
environment India vs China
india- deteriorating andnhinders growth
China - condition worse
education India vs China
india- heavy investment in higher education. Basic education- later
china- heavy inv in basic investment. higher edu- later
R &D India vs China
India - majority in public sector
china- majority in productive sector
three phases of evolution of economic thinking in India
I. pioneer phase (pre 1905)
II. nationalist phase (1905-1939)
III. modern phase (1939-1965)
Indian economics as a distinct discipline- origin?
Mahadev Govind Ranade
what did k.t. telang advocate
concept of dependency which is usually associated with Latin American school of 1950s
G.V. Joshi
Wrote on free trade issues around 1880s
Major economic issues of first four decades of 20th century
- steep inflation experience (1905-1916)
- problem of external rupee parity
- issue of imperial preferences
contribution of ambedkar
external parity of rupee- 1913, when gold exchange standard was formally introduced. Re 1= 2 shillings- fixed based on suggestion of Lord Keynes. parity proved unsustainable. the nationalist position was fix parity at pre-war rate - Re 1= 16 shillings. ambedkar opposed on grounds that it would favour and hit the working classes and the agricultural labourers. owing to the inflationary potential of the weaker rupee advocated by the nationalists, ambedkar must be credited for his remarkably innovative insight- distributional consequence of evolution.
Richest debate on Indian economic issue possibly
external parity of rupee. 1913
impacts of global tsunami 2009
- tightening of liquidity
- slow down of trade
- find out. imp.
what effect did the global tsunami crisis have on India’s invisible trade
spill over effect. remittance of non resident workers lowered due to job shrinkage. finalization of income contract in us and EU and other countries and lower earning from tourism
India embraced economic liberalisation in a meaningful sense from?
early 1990s
how is China more developed than India
India, china- developing but export basket resembles that of developed nation. export sector developed. India exports IT AND BPO services. in addition, China exports banking and other financial services. China’s export earnings are more than India’s
economic reforms can be conceptually divided into two broad strands
- stabilisation. redressing external internal imbalance in the economy
- structural adjustments to reduce rigidity and inefficiency in the system by improving competitiveness.
how does the 1991 reforms break with the past
- dismantle complex regime of licences, permits, controls
- reverse strong bias towards state ownership of means of production and proliferation of public sector enterprises in almost every sphere of economic activity
- abandon our inward looking policy. embrace international trade
contribution of ramesh Chandra dutt
he is remembered as an economic historian but he was also deeply interested in contemporary economy and other issues. in his open letters to Lord Curzon (1901,1902), he drew attention to causes of rural poverty, focussing on the burden of land revenues, a theme raja RAM mohan ray touched upon 70 years earlier.
Raja RAM Mohan Roy. evolution of economic thinking
so far as the economic history of the 20th century is concerned, raja RAM mohan Roy was one of the earliest Indians to write on the economic histories of British India. he made a powerfully justified plea for lowering the rents of ryots via permanent settlement. since then, writings on issues of economic policy rolled over and continued but the systematic critique of the imperial govt’s economic policies really came to the fore only towards the late hours of the 19th century. under the intellectual leadership of dadabhai naoroji , ramesh chandra dutt and mahadev Govind Ranade, together can be honoured as the father of Indian economics.
what is PQLI
physical quality of life index
